Valley Nordstrom project lands $11M state tax credit

Published on 04/14/2016 - 6:42 pm

Written by Business Journal staff

Nordstrom has been awarded the second-largest quarterly California Competes tax credit at $11 million.Nordstrom has been awarded the second-largest quarterly California Competes tax credit at $11 million.The Nordstrom fulfillment center project proposed for the Central Valley has received an $11 million state tax credit.

The award is part of the California Competes program meant to expand and retain Golden State jobs, and Nordstrom is one of three projects in the Central Valley to receive the quarterly awards.

At $11 million, Nordstrom will receive the second-largest credit awarded this go around through the Governor's Office of Business and Economic Development, or GO-Biz.

In its application for the credit, Nordstrom officials said they plan to spend upwards of $171 million in investment that will eventually create 367 jobs. Both Fresno and Visalia are in the running for the distribution center, which will fulfill online orders.

Nordstrom expects to start hiring for this project in the 2018 tax year, with new full-time hires receiving an annual minimum salary $29,120, according to the application.

Local economic developers said a third, out-of-state option is also in play for the clothing chain, but Nordstrom officials noted in their application that the $11 million tax credit would help ensure the project stays in California.

Started in 2014, California Competes offers tax credits to companies that want to relocate, remain or expand in the Golden State. The companies are required to honor a five-year agreement with the state promising to meet annual targets for job creation and financial investment.

Nordstrom isn't the only company to win a tax credit that is still unsure of its final project site. Revolution Plastics LLC, a manufacturer, recycler and supplier of plastic film used in the agriculture industry, won a $500,000 tax credit for an expansion into either Bakersfield or Fresno that will create up to 65 new jobs. The firm plans to spend $15.79 million on the expansion.

Another company, S&S Metal Fabrication in Kingsburg, plans to increase its workforce by four people with a $75,000 tax credit and proposed investment of $740,000.

All together, the latest slate of California Competes tax credit awards totaled $55.7 million across the state.

http://www.thebusinessjournal.com/news/development/22117-valley-nordstrom-project-lands-11m-state-tax-credit